On May 5, 2025, a considerable decline of 0.26% in the stocks of DJIA was reported. After a nine day streak of advances, the stocks started to fall on the first Sunday of May 2025. Due to change in the tariff policies and the federal reserves’ upcoming meetings on readjustments on the interest rates, there has been a sudden fall in the stocks of DJIA in the market.
Factors Influencing the Stocks of the DJIA
Let’s take a look at the key influencing factors leading to a decline in the stocks of the DJIA.
1. CRUDE OIL PRICES
OPEC+ has decided to increase their oil production. This has led to price fluctuations throughout the globe. Thus, there will be a significant increase in the cost incurred by the consumers and the producers. It is a clear indication of inflation in the global market. Price fluctuation is causing the stocks to soften drastically.
2. TARIFF POLICIES
Trump has imposed a 145% tariff on Chinese Imports as per the latest reports and a 100% tariff on foreign films. Due to this, a high market instability situation is expected to stretch for an even longer period.
3. INVESTOR SENTIMENTS
Due to the sudden fall of DJIA in the stock market, there has been a significant decline in the shares of the companies as well. This situation is probably going to impact directly on the investor sentiment. A prolonged drop in the stocks can lead to huge losses in the future shares of companies.
4. Global Economic Concerns
As a response to the aggressive tariff policies imposed by the US on Chinese imports, China has taken appropriate measures to tackle them. The country has decided to stop several imports from American companies as well. This has led to economic tension in the international market. The revenue of several companies have dropped due to the trade war between the US and China.
Top Tech Companies in the DJIA in May 2025
Now, let’s watch the top tech companies in the DJIA and how are they impacted by the sudden decline in the stocks.
1. Microsoft Corporation (MSFT)
Microsoft has maintained its stock value quite smoothly, especially when there is a considerable downfall in the stock market of DJIA. It showed a rise of 0.2% in its stock value. To note, on May 5, a 2.30% increment was observed in the stock value of the company. Thus, we can say that the stocks are increasing with a decreasing rate in Microsoft. However, still managing the stock value in such a recession period is an applaudable affair.
2. Apple Inc. (AAPL)
Due to recent changes in the tariff policies, the company is facing a sharp decline in its share prices. The company has a considerable amount of potential to come back as the top company in the global market. However, there has been a 3.1 % decline in the stock prices as of May 6. On the other hand, there was a fall of 3.78% softening of stock on May 5. This shows the efforts of the company to jump back to its original position in the global market.
3. NVIDIA Corp (NVDA)
NVDA has become a part of DJIA in November 2024 and is doing exceptionally well in the stock market. As of May 2025, the company has maintained its stocks very decently. Till now, there hasn’t been a negative decline in the stocks of the company. Although, today the company has faced a minute decline of 1.97% in the stocks, but still is positively sloping in the global stock market.
4. International Business Machines Corp. (IBM)
IBM has gracefully handled its stock value in recent days. Just like NVDA, they have maintained a positively sloped stock value curve in May 2025, with a minute difference of 0.8% decline today in its curve. Altogether, the company has managed the trade war recession with grace and is expected to cover all the differences soon.
Conclusion
DJIA consists of many of the leading companies in the stock market globally. Due to changes in the political and economic scenarios, it has faced a sudden downfall and incurred huge losses. The Dow Jones Industrial Average (DJIA) is expecting an even bigger loss than it has faced in the past few months before it had a constant 9-day upward trend in the stock market if the stock value continues to fall.
FAQs
- For what reason was NVDA added to the DJIA?
Ans. Due to the growing influence of NVDA over Intel, the company replaced Intel and has been proving its competitive advantage till now.
- Which tech company has the highest market capitalization in the DJIA?
Ans. Apple Inc. has the highest market capitalization of about $3.28 trillion in the DJIA tech companies.
- Is investing in DJIA tech stocks a good option right now?
Ans. Microsoft and IBM are offering market stability in their stock value while investing in Apple and NVIDIA is not a good option right now due to considerably higher risks. Keeping in mind the policy changes and their potential fluctuations in the future, decide where you should invest.
- What is the noted difference between the DJIA tech stocks and the Nasdaq stocks?
Ans. DJIA has a few companies that are among the top tech companies in the global market, while Nasdaq has a stronger foundation of tech stock companies. Thus, we can say that Nasdaq has a higher stock value than the DJIA.